DGH pulls up ONGC on KG block gas finds

The Directorate General of Hydrocarbons has criticised the Oil and Natural Gas Corporation on its functioning in the Krishna Godavari block.

The DGH has informed the ministry of petroleum and natural gas that ONGC has notified only three discoveries of A-1, U-1 and W-1, against the company's announcements of five gas finds in the Krishna Godavari basin.

Last month, the DGH had said ONGC was yet to submit the appraisal programme for these discoveries for government review. ONGC has also come in for flak from the DGH on the reported "in place" reserves of three trillion cubic feet (TCF).

"DGH's displeasure stems from ONGC's announcements of five hydro carbon discoveries of D-1, A-1, U-1, W-1 and E-1 in the NELP-1 block of KG-DWN," sources told Business Standard.

The DGH has also drawn the attention of the ministry on the E-1 well. "In this well, conventional testing is yet to be carried out. Mini DST (drill stem test) has been carried out which indicates absolute open flow potential of 14.68 million cubic metres a day."

A letter written by DGH VK Sibal to Petroleum Secretary M S Srinivasan stated that announcements of hydrocarbon discoveries in the NELP blocks are governed by the provisions laid down in the production sharing contract (PSC).

According to the provisions of the PSC, the contractor is required to inform the government in writing about the discovery within 30 days.

"The fourth discovery (D-1) was notified to the DGH after expiry of eight months from the abandonment of the well. In this well, no conventional testing was carried out and notification was based on the results of monitored drift tube (MDT) only," the letter stated.